Issue - meetings

As detailed in the recommendations.

The Chief Officer (Community and Enterprise) introduced the report on the approval of lending to NEW Homes to fund a development of 62 affordable new homes in Flint. 

The proposed re-development of The Walks would bring to the town a significantly improved housing offer, utilising traditional construction methodology which would provide thermally efficient, well planned and secure properties for the current and future residents of Flint.

The overall vision for marketing The Walks would be to create a united marketing strategy that reinforced the partnership between the Council and NEW Homes.  The marketing of The Walks would encompass developing a single brand that was easily recognised by local people.

Flintshire County Council had commissioned an independent valuation for The Walks from the District Valuer.  The open market value of the proportion of the site to be developed by NEW Homes was £771k.  There were projected abnormal site costs of £584k and when deducted from the valuation, left a net sale price to NEW Homes of c£187k.  This was the same process which was utilised for land disposed of recently to Pennaf Housing Group and Betsi Cadwaladr University Health Board for the development sites in Flint.  An application for consent to transfer the land to NEW Homes had been made to Welsh Government (WG) with a formal response expected.

A number of funding solutions had been identified to finance the development.  The NEW Homes Board met on 26^th April 2016 and agreed in principle to proceed with The Walks development with the preferred funding provider being Flintshire County Council.  Details of the options available, including an appraisal of each, were outlined in the report.

The Local Government Act 2003 provided the Council with the powers to lend finance to NEW Homes and if agreed, could provide the Council with a new revenue stream alongside enabling NEW Homes to help the Council meet the identified need for more affordable properties in the County.

It was recommended that delegated authority be given to the Council’s Section 151 Officer in conjunction with the Monitoring Officer to agree the terms of a loan and the rate of interest to be charged to NEW Homes, following receipt of external specialist advice.

In response to a question from Councillor Kevin Jones, the Chief Officer explained that the Council could either lend at commercial interest rates, and therefore provide no State Aid to NEW Homes, or it could consider lending at interest rates lower than commercial rates which would constitute State Aid.  Lending at lower than commercial rates was lawful provided that the purpose of the loan qualified for a State Aid exemption and certain criteria were not breached.  The Council had received legal advice indicating that the provision of homes for rent qualified for a lawful State Aid exemption.

Members welcomed the report on an enterprising scheme to meet the housing demand in the County.

Councillor Kevin Jones asked for an update on the application to suspend Right to Buy properties.  The Chief Officer explained that  ...  view the full minutes text for item 5